No quick recovery expectations in the Eurozone

No quick recovery expectations in the Eurozone

According to several latest financial market information key indicators, for the Eurozone a quick recovery in the economy is not foreseen. Indicators such as purchasing managers index (PMI) have published their index at 51.6 percent in July, down by 0.2 percent compared to 51.8 percent published in June. Another main indicator in the Eurozone, Germany's IFO institute has cut its growth forecast for 2002 by 0.2 percent down to 0.7 percent, showing rather weak recovery of Eurozone largest economy. Furthermore the business sentiment index of same institution, regarded as the key economic indicator in Germany decreased its anticipations for growth in 2003 down to 2.3 percent. Monetary Policy Committee of The Bank of England this week decided not to change the interest rates of 4 percent, the 38-year low rates, as expected. Prices in the financial markets for treasuries suggest the next movement in interest rates will be down rather than up, although the rising trend of house prices continue.